Manufacturing Expanded to 51.9% in September

Tempe, AZ, November 1, 2016— The October Purchasing Manager's Index registered 51.9%, an increase of 0.4 percentage point from the September reading of 51.5%, according to the Institute of Supply Management Report on Business.

The New Orders Index registered 52.1%, a decrease of 3 percentage points from the September reading of 55.1%.

The Production Index registered 54.6%, 1.8 percentage points higher than the September reading of 52.8%.

The Employment Index registered 52.9%, an increase of 3.2 percentage points from the September reading of 49.7%.

Inventories of raw materials registered 47.5%, a decrease of 2 percentage points from the September reading of 49.5%.

The Prices Index registered 54.5% in October, an increase of 1.5 percentage points from the September reading of 53%, indicating higher raw materials prices for the eighth consecutive month.

For inclusion in this report, our panel responded to a special question regarding the Hanjin Shipping Company bankruptcy to gain insights into the impact on their businesses this quarter. The responses were as follows: not impacted, 51.9%; small, not material impact, 29.7%; material, but manageable impact, 13.4%; large material impact, 0.8%; and unsure, 4.2%.

Of the 18 manufacturing industries, ten are reporting growth in October in the following order: Textile Mills; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Computer & Electronic Products; Furniture & Related Products; Paper Products; Printing

& Related Support Activities; Petroleum & Coal Products; and Chemical Products. The eight industries reporting contraction in October—listed in order—are Wood Products; Apparel, Leather & Allied Products; Primary Metals; Plastics & Rubber Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Fabricated Metal Products; and Machinery.